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socrateaser, Attorney
Category: Bankruptcy Law
Satisfied Customers: 38878
Experience:  Attorney and Real Estate Broker -- Retired (mostly)
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My husband and I live in indiana and got into rentals a few

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My husband and I live in indiana and got into rentals a few years before the bottom dropped out.the We have had to support them on more than one ocassion from. From our personal sccount.I don't know how much longer we can hold on.he and I both work a lot of hours at other jobs and can no longer afford to pay anyone to help with the apartments. We have tried to sell but no luck.we can go on for now but have no back up for anything major life roof replacement etc. we keep hearing that bankruptcy is more difficult now. If we get to the point that we can't go on, I need to know what is do we know when it is time to file...we are not in an Llc nor are we incorporated...does this me we will loose everything. I am 56 and he is 59. We have worked hard and been responsible all of our lives but we are getting tired and I worry about the tole it is taking on both of us to work nonstop.

Bankruptcy does not mean that you will lose everything. Retirement accounts (401(k), IRA, etc.) are generally exempt from seizure in bankruptcy. You and your spouse are also entitled to a $34,200 homestead exemption against your principal residence.

If your secured debt does not exceed $1,149,525, then you can file Chapter 13 and you may be able to force lenders to modify your mortgages on the rentals to reduce your principal balance (called a "cramdown"). If your secured debt is greater than that amount, you would have to file Chapter 11, which is much more costly from a legal expense, and sometimes this expense makes a bankruptcy with a cramdown unrealistic. In which case, you might not be able to file for bankruptcy, because your income may be too great for a Chapter 7 (liquidation). Your total income must be less than the state median for your family size (1-4 family members: $42,089; $52,618; $58,916; $70,763; add $8,100 for each additional person).

So, things may not be as bad as you think -- they may actually be pretty good. You need to sit down with a local bankruptcy lawyer and put your financial cards on the table, so that the attorney can figure out if any bankruptcy Chapter will work for your circumstances.

For a referral, see this link.

Hope this helps.
socrateaser and other Bankruptcy Law Specialists are ready to help you
Customer: replied 4 years ago.
This was extremely helpful . I appreciate your time. I just need to know where we may be going if push comes to shove. It seems so crazy to think that we would be in this predicament . I am a professional and am respected for my skills and work ethic. My husband has always worked hard, been honest and never quits no matter how hard it gets. It is hard to believe that we are whew we are. I am sure we are better off than many. One of my greatest concerns is that we will hold on so long that we will deplete all reserves of time, energy, and money just to have to loose it all in the end anyway giving us fewer years to get prepared for the day we can no longer be major wage earners. Sorry, just doing some venting as insomnia has been an issue as of late.

I understand (being a nite-owl myself). Abraham Lincoln, Samuel Clemens/Mark Twain, Milton Hershey (chocolates), Walt Disney, Ulysses S. Grant, Gary Kirchner (Producer: Star Wars, American Graffiti), Donald Trump, Henry Ford -- all have filed bankruptcy at one time of their life.

I'd like to be on that list.

Hope this helps.

socrateaser and other Bankruptcy Law Specialists are ready to help you